Comprehensive Guide to Market-Based Scope 2 Calculations with Energy Attribute Certificates (EACs) in 2026
For the experienced CSO, "Market-Based Scope 2" is terminology that's as familiar as the back of their hand. Or, for a novice sustainability professional, this phrase might be somewhat new. We promise that this guide is valuable to those with any level of corporate sustainability experience, but let's unpack the very basics first.
"Scope 2" is a term that was first introduced as part of the Greenhouse Gas Protocol (GHG Protocol). It's incredibly commonplace in corporate sustainability lingo (for good reason!) and by the end, you'll be sufficiently knowledgeable to tackle your own market-based Scope 2 emissions.
This article explores the key processes within a market-based quantifying and disclosure workflow, with a specific focus on helping reach the understanding of how to make an appropriate and informed EAC procurement decision - without needing to rely on intermediaries who keep information gated behind their billable time.
Before we begin, a few quick notes on the scope of the article:
- We will be focusing on electricity as the most common market-based Scope 2 energy carrier, as opposed to steam, heat, or cooling.
- This article focuses only on market-based emissions reporting, which forms just one half of Scope 2 disclosure in most jurisdictions. Read about the difference here.
- To learn about location-based calculations for electricity consumption, read our dedicated guide here, or view our free location-based Scope 2 disclosure calculator.
What are market-based Scope 2 emissions (and compliance)?
Market-based Scope 2 emissions are the GHG emissions indirectly associated with purchased energy, especially electricity. The key word here is "purchased", which ties all discussion around Scope 2 reporting to a deeper understanding of renewable market mechanics - we'll get onto this later.
From a compliance standpoint: we're looking at a multi-step, cross-functional task that all CSOs face - building the complete picture around organisational emissions and reporting them in a way that will hold up under scrutiny.
Let's quickly run through the steps involved.
What exactly does market-based Scope 2 compliance entail?
No matter the Scope 2 regime, there are two main stages - quantification, and reporting. In both stages, understanding the role that EACs play is paramount, and using them efficiently can save you on time, budget and potential scrutiny.
Which GHG disclosure regime do I follow?
Before you can embark, you need to know which GHG disclosure regime you're following. This article will base facts on the GHG Protocol, but disclosure regimes contain subtle procedural and structural differences that can have material consequences.
This table provides an overview of major mandatory corporate disclosure regimes that each require the reporting of Scope 2 GHG emissions. Note that "regime" means that these are requirements set into law, and each regime has its own scope of participation.
Not comprehensive. Written for topical overview purposes only - not intended as legal or compliance advice. Independently verify all regulatory resources and requirements.
Quantification
Quantification is the stage where you will work across your entire organisation to assemble the information you need. It needs to be done with care, taking detailed notes, documenting your steps, and being sure the paper trail is intact.
First, Establish Boundaries
You set the remit of the quantification first. This is establishing which exact entities and operations fall within your Scope 2 emissions evaluation, and over what time period you're evaluating these entities. This is especially crucial in larger organisations with subsidiaries spread across regions, complex ownership structures, and energy markets.
You can't set these boundaries arbitrarily. Rather, whichever GHG reporting regime you're complying with will guide you in this area, and this typically depends on where entities are domiciled and do business. Wherever you encounter ambiguities regarding deciding what's inside this circle, disclose in accordance with your reporting regime's expectations and explain your decision clearly.
Next, Gather Data
Next, you'll need to dive into exact energy consumption figures for sites within your established remit. You're tasked with identifying exact consumption per site, including relevant fuel usage where applicable.
At this stage, consumption data is what matters, as it represents the energy usage reality, before any attempts to lower your gross market-based Scope 2 emissions have been made. Don't conflate consumption data with attributes or emissions at this stage.
Decide Certificate Type
When it comes to market-based reporting, EACs are required. They provide the contractual proof of the energy's renewable attributes. These instruments depend on your location.
Under the GHG Protocol and CSRD, retiring valid certificates (and including proof of retirement in your disclosure documentation) is the only way to report market-based zero-emissions for energy purchased; otherwise, you must use the "residual mix". To expand, "residual mix" represents the "leftover" electricity on the grid after all renewable claims via EACs have been deducted - note that this should not be confused with the emissions factor of the standard grid average used in location-based reporting. Residual mix data can be found here:
EAC Calculations and Usage
Next are the calculations.
- Identify the EAC usage rules that your disclosure regime sets. This means checking for regime-specific requirements on EAC-type as well as meeting the crucial quality criteria within the GHG Protocol, covering: correct vintage matching, market boundaries, and more. To ensure accuracy and to prevent double counting, Soldera's AI can match these requirements with your consumption data and regime requirements automatically.
- Decide on the total MWh in cancellations you want based on the % of your operational market-based emissions you would like to eliminate (typically 100%).
- Identify existing certificates procured or received (e.g. within a PPA or vPPA). Purchase and cancel (retire) the corresponding amount of EACs. Soldera's AI sources directly from thousands of renewable producers, automatically.
- Assign a zero tCO₂e emissions factor only to the megawatt-hours (MWh) covered by valid, retired EACs.
- For any remaining consumption not covered by verified contractual instruments (meeting the quality criteria), you are required to apply the residual mix emission factor.
- Sum. The final market-based figure is the sum of these two parts - adding your figures from 4 and 5.
As a bonus, you may wish to include the extra figures which can make your data more interpretable.
- Raw electricity consumption. When disclosed separately, means that high consumption is acknowledged despite low market-based numbers.
- Revenue-linked "intensity" metrics (for example, market-based tCO₂e per net revenue) can contextualise your environmental impact alongside financial performance, representing how emissions-efficient your business is.
Now for reporting
Now for the compilation of your documents, collected into an evidence pack. Disclaimer: as explored, most disclosure regimes require dual Scope 2 reporting (location-based and market-based). This covers only the market-based half - if you want to understand how location-based electricity calculations actually work, we have a short guide that walks through it.
Report your calculated gross market-based Scope 2 (tCO₂e) as a distinct, explicitly labelled figure. Include your prior calculations, writing a concise narrative explaining your EAC procurement choices. If you focused on additionality (e.g. via EKOenergy or RE100), the GHG Protocol recommends narrative disclosure, allowing you to highlight the instruments reflecting additionality or ecological benefit. When you cancel inside the Soldera platform, your cancellation certificates include this information when downloaded, ready for submission.
Build an IMP to stay consistent
Now that the hard part is over, your Inventory Management Plan (IMP) must clearly describe how your organisation applies market-based reporting rules. Include which contractual instruments you accept, how you match attributes to consumption, what documentation you maintain, and which regulatory regime you follow. This ensures consistency as procurement, markets, and policy conditions evolve - leaving you in good stead for your next Scope 2 report.
Where Soldera fits in this market-based reporting stage
Soldera's AI was built to procure EACs automatically, parsing consumption data, internal sustainability mandates, and regulatory requirements to source valid EACs directly from thousands of member producers. We compile the necessary documentation for reporting and auditability, including cancellation certificates and supporting evidence packs for each claim. Create an account, and within minutes you can be matching your consumption data.
